Business
Dorman Products, Inc. Reports Fourth Quarter and Fiscal 2019 Results, Issues Fiscal 2020 Guidance
Fourth Quarter 2019 net sales of $239.6 million, down 8% compared to $260.3 million in the prior year.Diluted earnings per share (EPS) in the quarter on a
About this update from Dorman Products, Inc.
[{"type":"text","content":"Fourth Quarter 2019 net sales of $239.6 million, down 8% compared to $260.3 million in the prior year.Diluted earnings per share (EPS) in the quarter on a GAAP basis declined 49% to $0.54 compared to $1.05 in the prior year. Adjusted diluted EPS of $0.52, declined 53% compared to $1.10 in the prior year.Another major premium chassis win with a large national customer expected to begin shipping in the second half of 2020.Strong operating cash flow in the quarter of $36 million.The Company expects fiscal 2020 net sales growth between 5%-8%, fiscal 2020 EPS of between $3.25 and $3.45 on a GAAP basis, reflecting an increase of between 27% and 35% year-over-year, and fiscal 2020 adjusted EPS of between $3.35 and $3.55, reflecting an increase of between 26% and 34% year-over-year. COLMAR, Pa., Feb. 24, 2020 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ:DORM), a leading supplier in the automotive aftermarket industry, today announced its financial results for the fourth quarter and fiscal year ended December 28, 2019.\n Fourth Quarter Financial ResultsThe Company reported fourth quarter 2019 net sales of $239.6 million, down 8% compared to net sales of $260.3 million in the fourth quarter of 2018. A primary driver of the net sales decrease in the quarter was an increase in customer return provisions (resulting in a reduction of net sales of $11.2 million) primarily from new business wins, including a recently launched premium chassis program with a large national retail customer. Gross profit was $78.3 million in the fourth quarter compared to $96.9 million for the same quarter last year. Gross margin for the fourth quarter was 32.7% compared to 37.2% in the same quarter last year. The adjusted gross margin was 32.8% in the quarter compared to 37.8% in the same quarter last year. The adjusted gross margin decline was primarily due to the increased customer return provisions (~310 bps, or $11.2 million), a charge related to historical underpayment of customs duties described in further detail below (~100 bps, or $2.4 million), and redundant overhead costs as a result of operating out of two distribution center locations and lower productivity levels as we ramped up production at our new Portland, TN distribution facility (~80 bps, or $1.9 million). Selling, general and administrative (“SG&A”) expenses wer...